OMVIC response to COVID-19 and dealership operations

Some Canadian dealers and industry suppliers are taking issue with how OMVIC is interpreting the COVID-19 Emergency Order issued by the Ontario government. Posts from individuals on LinkedIn, such as Ryan O’Connor, have been widely circulated. Canadian auto dealer reached out to OMVIC to share its perspective.

OMVIC provided a written statement by email which appears below:

OMVIC would prefer to provide a written response to your inquiry regarding Mr. Michael Ryan O’Connor’s post, particularly in light of the lack of context in the quotes Mr. O’Connor attributes to OMVIC. Clearly, each person is entitled to their opinion, opinions which may be influenced or based, even partially, on past experience.

As previously stated, Mr. O’Connor’s post appears to take issue with an answer provided to another journalist – but what is missing from the post (and from the original story) was the question: “would dealers face fines for at-home test drives, or is this simply a recommendation?” In other words, will the regulator stand by and do nothing if registrants breach the Emergency Order. It may have been simpler to state, ‘this is not a recommendation’ and leave the rest implied, but OMVIC wanted to be clear and provided its interpretation of a provincial Emergency Order that is intended to save lives. This position was not hastily determined – it came from a thoughtful process that included input and insight from legal, compliance and senior management staff.

I must unfortunately report that OMVIC is aware of a small number of dealers allegedly defying the Emergency Order, even after direct cautions from OMVIC to stop. In at least one case, administrative action is planned.

Todd, this is not what OMVIC wants to do! OMVIC is keenly aware of, and sympathetic to, the plight of dealers and salespeople during this pandemic. But as the regulator, when a dealer breaches the Code of Ethics, particularly after a direct caution from OMVIC to stop, what is OMVIC supposed to do? We are mandated to administer and enforce the MVDA and if a dealer’s action could put public safety at risk in defiance of a Provincial Order meant to save lives, we must act. To fail to do so would be an abdication of responsibility.

Never in our history have individuals, car dealers…even regulators, faced such uncertainty. These are unprecedented times with rapidly changing circumstances that affect us all. OMVIC understands that no business wants to be ordered closed and no employee wants to be laid off.

But OMVIC did not issue the Emergency Order and OMVIC cannot change it. The Order is intended to save lives and lessen the spread of Covid-19. Only the province can change the Order. Having said that, OMVIC is engaged in regular communications with the province, TADA and UCDA and is ensuring the concerns of dealers and salespeople are being heard.

Finally Todd, I would like to make you aware of a step OMVIC announced today to try and assist dealers and salespeople. OMVIC’s board has approved the deferral of registration renewal fees until Sept. 1, 2020. OMVIC will continue processing all required renewals between now and August 31, 2020, but all dealers and salespeople can elect to postpone payment of the renewal fee until Sept. 1, 2020.

Important note for dealers: the deferral applies to the renewal fee; it does not apply to payment of transaction fees – transaction fees are still payable at time of renewal.

Please note, registration renewal dates have not been extended, it is payment of renewal fees that may be deferred. Dealers and salespeople are still required to renew registration on time. This can be easily accomplished using OMVIC’s Online Registration Services. The online system will automatically offer the fee deferral option.

I hope this information is of assistance. Keep well!

 

Terry O’Keefe

Director, Communications, Media Relations and Education

 

Editor’s note: OMVIC has a detailed FAQ page related to how dealerships should operate during the pandemic. You can access that here.

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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